1. Buil Schouten

2. Why Alibaba?

3. “Open Sesame!”
People from India, people from Germany, people from Tokyo and China, they all knew about Alibaba. Alibaba – open sesame. Alibaba is a kind, smart business person, and he helped the village. So … easy to spell, and globally known. Alibaba opens sesame for small- to medium-sized companies.
The name Alibaba came from the character Ali Baba from the Persian literature One Thousand and One Nights because of its universal appeal. According to Jack:

4. JACK MA 1. English teacher. His salary was just 12-15 USD per month
He used to guide tourists for free for 8 years
He raised initial round of funding for Alibaba within 2 hours. It was $60,000.
He is a first mainland Chinese entrepreneur to appear on the cover of Forbes.
An interesting conversation between Jack Ma and his wife Zhang Ying.
First successful CEO decided to retire in his 50’s (9/10/2018)
Source:
JACK MA

5. History Founded in 1999 by Jack Ma (Alibaba.com B2B)
In 2003, Taobao, a C2C e-commerce
In 2008, Tmall, a B2C e commerce platform
In 2010, Jujuasuan group shopping and flash sale website
Holds stakes in online video company Youku Tudou and entertainment company Alibaba Pictures.

8. Mission Statement “make it easy to do business anywhere”

10. IPO in 2014

11. How does Alibaba.com makes money?
•FREE SUPPLIER MEMBERSHIP: 50 Products
Commission only if the money paid through Alipay and the seller is from mainland of China, Hong Kong and Taiwan
•PREMIUM GOLD SUPPLIER : Verified supplier
Mainland Chinese supplier must buy this membership China Members: $5,000/yr
Outside mainland China, Hong Kong, Taiwan and Macau, USD$2,999
1) Quote the RFQ that buyers post on Alibaba.com. 2) Reply to inquiries that buyer sends to you. 3) Top-Tier priority listings of your products 4) Product Showcase that enjoys even higher ranking. 5) Biz Trends gives you real-time performance analysis. 6) Exclusive access to buyers and gain their trust faster.

12. How does Taobao.com makes money?
Taobao means “search for treasure” in Chinese
Launched on 10th May 2003
eBay shut its business in China in 2006
400 million active users
Revenue
Free to Join, no transaction fee to conduct trade
Functions just like Google: Lists the result of the specific keywords and where merchants pay to stand out of all the other players through advertising and other marketing strategies. This was one of the reasons of Taobao’s high user base in China.

13. Tmall.com How did Tmall get started?
Taobao, in April 2008, introduced a new B2C platform called Taobao Mall to complement its C2C marketplace. The idea got a whole new identity when Tmall.com was launched in November 2010 and became an independent business in June 2011.
It currently features more than 70,000 international and Chinese brands from more than 50,000 merchants and serves more than 180 million buyers.

14. How does Tmall.com makes money?
Revenue
Commissions as a percentage of the price of good sold
(it varies for different categories)
Service fees : one time fixed security deposit & annual technology and service fee (30,000 RMB or 60,000 RMB)
Marketing services provided to the suppliers

15. IPO in 2014

16. Revenue trend

17. Annual revenue of Alibaba Group from 2010 to 2018 (in million yuan)
In the fiscal year ending March 31, 2018, Chinese e-commerce corporation Alibaba recorded consolidated revenues of billion yuan. (39.9 billion) U.S. dollars)

18. P4P : Pay for performance advertising
P4P : Pay for performance advertising

19. Revenue Segments

20. Revenue Segments P4P : Pay for performance advertising
P4P : Pay for performance advertising

21. P4P : Pay for performance advertising
P4P : Pay for performance advertising

22. Revenue trend

23. Alibaba’s success behind of Chinese E-Commerce Trend
Amazon
Alibaba’s success behind of
Chinese E-Commerce Trend

24. Online vs Offline Market Share
U.S. dollars)

25. Current e-commerce Market Share in China
Amazon
Current e-commerce Market Share in China

26. U.S. dollars)

27. Competition I
Mobile Market in China

28. Online by Devices
U.S. dollars)

29. Competitors in China JD.com

30. Mobile Payment Usage in China
Amazon

31. Mobile Payment Share in China
Amazon

32. Mobile Payment Share in China
Amazon

33. Mobile Payment Usages in China
Amazon
Despite holding similar market share #Alipay and #WeChatPay have very different strengths. Alipay is prefered for online payments due to Alibaba's strength in ecommerce. WeChat however is the prefered option for offline payments.

34. Mobile Payment Usage in China
Amazon
Despite holding similar market share #Alipay and #WeChatPay have very different strengths. Alipay is prefered for online payments due to Alibaba's strength in ecommerce. WeChat however is the prefered option for offline payments.

35. How Does Chinese homeless ask for money?
Mobile Usage in China
Amazon
How Does Chinese homeless ask for money?

36. How Does Chinese homeless ask for money?
Mobile Usage in China
How Does Chinese homeless ask for money?
Amazon

37. Competition II
Global Market

38. Alibaba Global Revenue 2013-2017

39. Amazon vs Alibaba

40. Amazon vs Alibaba

41. Amazon vs Alibaba
Red – acquisition

42. Amazon vs Alibaba
Red – acquisition

43. Battle Ground : India

44. Amazon vs Alibaba
Red – acquisition

45. Amazon vs Alibaba: India
Amazon launched amazon.in in 2013
Spend $2B in India to develop its e-commerce network
Invest in the growing entrepreneurial hub
Early Stage challenge:
About half of Amazon’s customers paid cash upon delivery
-Created logistical challenges
-Limited Amazon’s potential in the region.
Amazon invested in gift card solutions company QwikCilver Solutions in Q4’14.
-follow-on investment in the company in 2016.
-The gift card system has since been integrated into Amazon’s marketplace, and can be sent via
Red – acquisition

46. Amazon vs Alibaba: India
Amazon launched amazon.in in 2013
Alibaba chased into India Market
Alibaba quickly followed (2 months after Amazon)
In January 2015, Ant Financial invested $200M into One97- Patym
Paytm
Paytm is India’s largest mobile payments company, and has amassed over 200 million users since its launch in 2010.
Eight months after their original investment, Alibaba and Ant Financial invested another $680M into the quickly growing company.
Together, Alibaba and Ant Financial own 40% of Paytm.
Red – acquisition

47. Amazon vs Alibaba
Red – acquisition

48. Sample Questions
In China, which company has the largest offline mobile payments market share?
Tenpay (Wechat pay)
Union pay
Alipay
None of the above, Cash is the king
2. What is Alibaba.com’s main stream of revenue?
Advertisement
Commission
Membership
Transaction fee
3. In Alibaba group, which of its business segments bring the largest revenue?
Cloud computing
Chinese retail market
International wholesale Market
Cainiao supply chain logistics service
Red – acquisition

49. Closing Thoughts
Eventually these two or more large e-commerce companies will take up a majority of global market share.
Next battle grounds could be Latin America and Africa as internet penetration rises.